Mumbai, August 29, 2024 – Falcon, a leading innovator in banking technology, unveiled its 'Credit Line on UPI' platform at the Global Fintech Fest 2024, offering banks a powerful platform to rapidly launch innovative credit products, in 4-6 weeks. The modern stack supports secured, unsecured, interest free, interest bearing, and EMI-based products, enabling banks to maximize revenue through offerings tailored to various customer segments and their demands.
UPI recently hit a significant milestone of crossing 100 billion transactions in FY24, showcasing its widespread adoption and potential for integrating credit solutions. Leveraging UPI for credit lines could bring over 200 million Indians into the formal credit economy. This combination of reach and accessibility makes Credit Line on UPI a game-changer in the financial landscape.
However, traditional credit card, core banking, and lending systems have long posed challenges for banks, particularly due to the high costs and inefficiencies associated with legacy infrastructure. These systems often struggle to scale and adapt to the rapidly changing financial landscape, making it difficult for banks to offer targeted and cost-effective credit solutions to their customers.
Falcon’s Credit Line on UPI directly tackles these challenges, offering a modern, scalable solution that significantly lowers operational costs while enhancing efficiency and flexibility. By leveraging the widely adopted UPI platform, Falcon enables banks to provide credit more affordably than ever before. Furthermore, Falcon’s solution is designed to future proof banking operations by integrating the functionalities of both credit and lending systems. This cost-effective, dual capability allows banks to swiftly launch purpose-built products, enhancing customer satisfaction, boosting Net Promoter Scores (NPS), and driving revenue growth—without the burden of high infrastructure expenses.
Since its inception in January 2022, Falcon has quickly established itself as a key player in the banking technology space. The company reported INR 95 Cr in revenue for FY 23-24 and has processed more than $1 billion in payments. Falcon’s signed total payment volume (TPV) pipeline now exceeds $4 billion, and the company counts over a dozen financial institutions among its clients, including major banks like PNB, Shivalik SFB, Karur Vysya Bank, ICICI Bank, and NSDL Payments Bank.
"At Falcon, we’re enthusiastic about the potential of Credit Line on UPI. Similar to the transformative impact of IndiaStack, we see CLOU as a game-changer that will surpass traditional credit cards for millions of Indians with limited credit histories. In just five years, we believe this will become the preferred payment method for the majority. However, the current core banking, credit card, and lending systems aren’t built to support the scale and speed of innovation that this shift demands.”, said Priyanka Kanwar, Co-founder and CEO at Falcon. “That’s why at Falcon, we’ve engineered globally scalable, cost-effective, and cutting-edge systems, specifically designed to meet these challenges and let banks bring Credit Line on UPI to its full potential."
What sets Falcon’s solution apart is its ability to minimize integration complexities.The platform allows banks to use their existing systems, such as their Loan Origination System (LOS), UPI switch, or Collections or alternatively, use Falcon for all their end-to-end needs. Banks can configure credit limits, interest rates, and a variety of fees, ensuring the products meet specific customer needs.
“At Falcon, we’ve designed a robust 'Credit Line on UPI' platform to offer customers a range of product variants that cater to their individual lifestyles and financial needs,” said Balaji Sundeep, Vice President of Product at Falcon. "Whether it's the convenience of sachet credit for short-term needs, the simplicity of easy installment repayments, or the control provided by flexible billing and purpose-driven credit for larger, category-specific expenses, our solution empowers customers to choose what best fits their financial situation.
Falcon's Credit Line on UPI stack equips banks to not only meet current market needs but also create unprecedented credit products, ensuring that every Indian has access to the credit they deserve.
About Falcon
Founded by serial entrepreneur Prabhtej Bhatia, Yale alum Priyanka Kanwar, and veteran banker Chinmaya Desai, Falcon is a cloud-native, AI-first banking technology platform that helps banks and lenders quickly and affordably launch next-gen financial products, such as credit cards, credit lines on UPI, prepaid cards, fixed deposits, and loans. The company has processed over $1 billion in transaction volume, works with a dozen of India’s top banks & FIs, has raised funding from marquee investors across India, Singapore, and the United States, and continues to lead the industry with its innovations. Falcon’s management team includes seasoned professionals from companies such as Zeta, Razorpay, Mahindra Comviva, FIS, Worldline, and NPCI.
Moneycontrol Journalists were not involved in the creation of the article.
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